Acrow Limited’s MI Scaffold has secured what it says is a significant contract renewal with the BHP Mitsubishi Alliance (BMA), building on the existing 10-year relationship between the two groups.
The contract has an initial term of three years, with an additional one-year extension option. The agreement guarantees a baseline revenue of approximately A$15 million ($9.44 million) per annum, equating to a minimum value of A$60 million over the full term of the contract. Additionally, there is scope to increase the baseline revenue by up to A$4 million per annum, Acrow says.
The agreement covers BMA’s Bowen Basin coal mines and Hay Point Coal Terminal (pictured), at Mackay, in Queensland. It will include both the provision of equipment and labour hire, to support maintenance and shutdown access work. The new contract will be implemented progressively as existing agreements expire and there are no material conditions that need to be satisfied prior to commencement.
This contract will play a key role in underpinning MI Scaffold’s business over the next four years, representing at least 35% of branch revenue at its minimum value, Acrow says.
Acrow CEO, Steven Boland, said: “Securing this contract renewal with a blue-chip organisation like BMA is a strong endorsement of Acrow’s, and in this case MI Scaffold’s industrial access service offering. I congratulate our Mackay team for having done a tremendous job in securing what now becomes our single largest contract win for our Industrial Access business.”
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